John Thanassoulis, professor of financial economics at Warwick business school, said: "The big trend we have seen in Coventry is the decline in manufacturing and an increase in service industries, such as the Barclays call centre.

"The service growth hasn't compensated for the manufacturing job losses and the recession hasn't helped the situation.

"However, the city is turning a corner now and, in fact, manufacturing seems to be increasing again.

"One of the big things that sets Coventry apart from other cities is the presence of the University of Warwick.

"The university's science park is huge and we are starting to see clusters of businesses forming around that.

"I do believe the city can bounce back.

Unions are concerned that too many jobs in the city are short-term agency roles

"I don't think we will see the kind of mass manufacturing we saw in previous years," added Professor David Bailey, from Aston University Business School. "But the city has undoubtedly diversified."

But the question remains about job security for low-skilled workers.

Angela Tellyn, partnership manager for the chamber of commerce, said: "Many businesses would love to be able to offer full-time contracts but the economy doesn't always allow them to do that.

"But I think that will change. We are seeing lots of confidence from businesses.

"For those who are affected by the closure of Barclays, things are particularly difficult," added Councillor Lynnette Kelly, cabinet member for business and employment at Coventry City Council.

"The losses represent about half the call centre jobs in Coventry. But we are doing everything we can think of to support the creation of jobs in the city."